Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate-related financial risks
• Greenwashing
• ESG disclosures
• ESG stewardship
• Taxonomy
• Sustainable finance
• Climate emissions
• Climate risk
• Carbon neutral claims
• Voluntary carbon offsets
• Diversity
• Gender pay gap
• Transition finance

Climate Goals & Targets

Environmental Challenges

• Lack of uniformity in ESG regulation across borders
• Greenwashing concerns
• Difficulty in assessing compliance with evolving ESG standards

Mitigation Strategies

• Monitoring regulatory announcements
• Providing guidance on anti-greenwashing rules and climate disclosure legislation
• Supporting industry in building capability in sustainable finance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems

Environmental Achievements

• In December 2019, Singapore-based lessor Avation acquired three ATR 72-600s, financed by Deutsche Bank as the first ever commercial aircraft financed with a green loan. These aircraft emit 40% less carbon dioxide than comparable regional jets.

Climate Goals & Targets

Environmental Challenges

• Lack of definitive criteria for green/sustainable financing in aviation leading to limited access for airlines and lessors.
• Concerns about “greenwashing” in developing green finance products for airlines.
• Technological limitations in reducing aviation's dependency on fossil fuels.
• Difficulty in identifying leading-edge technology and assessing its impact over time.
• Varying rates of transition to alternative fuels across different aircraft types.
• Risk of “locking in” carbon-intensive assets by supporting the purchase/lease of polluting aircraft.
• Challenges in measuring emissions and accounting for SAF use.
• Monitoring the required percentage use of sustainable aviation fuel.
• Decommissioning requirement potentially forcing acquisition of non-compliant aircraft.

Mitigation Strategies

• EU Taxonomy Regulation aims to provide clarity on sustainable activities.
• Steer Report provides recommendations for technical criteria.
• Draft Technical Screening Criteria offer options for sustainable aircraft leasing.
• ICAO aeroplane CO2 emissions standard provides a verifiable measure of emissions.
• Inclusion of SAF use in criteria to incentivize its adoption.
• Decommissioning requirement aims to encourage fleet renewal.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EU Taxonomy Regulation